City Commission Minutes 08-10-2004

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     CITY OF MUSKEGON
       CITY COMMISSION MEETING
                      AUGUST 10, 2004
    CITY COMMISSION CHAMBERS @ 5:30 P.M.


                                MINUTES

   The Regular Commission Meeting of the City of Muskegon was held at City
Hall, 933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, August 10,
2004.
   Mayor Warmington opened the meeting with a prayer from Pastor Sarah
Johnson from the Word of Truth Outreach after which the Commission and
public recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
  Present: Mayor Stephen Warmington, Vice Mayor Bill Larson, Commissioner
Chris Carter, Kevin Davis, Stephen Gawron, Clara Shepherd, and Lawrence
Spataro, City Manager Bryon Mazade, City Attorney John Schrier, and City Clerk
Gail Kundinger.
2004-72 CONSENT AGENDA:
      A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve the minutes of the Regular Commission
Meeting that was held on Tuesday, July 27, 2004.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
      B. Resolution for Charitable Gaming License. CITY CLERK
SUMMARY OF REQUEST: The Michigan Irish Music Festival of Muskegon is
requesting a resolution recognizing them as a non-profit organization operating
in the City for the purpose of obtaining a gaming license. They would like to
hold a raffle at Heritage Landing during their festival on September 17 – 19.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
      C. Liquor License Request – Sunny Mart, 2021 Marquette. CITY CLERK
SUMMARY OF REQUEST:          The Liquor Control Commission seeks local
recommendation on a request from Christine R. Singh to transfer ownership of
the 2004 SDM Licensed Business from Indu Gupta.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval.
      D. Sale of Buildable Vacant Lot on Lawrence Avenue.             PLANNING &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve the sale of a vacant buildable lot at 1536
Lawrence Avenue (Parcel #24-610-000-0043-00) to Gloria Fisher of 430 Glen Oaks
Drive, Apt. 3B, Muskegon, MI. The lot is 80 x 132 ft. and is being offered to Ms.
Fisher for $6,750. The details of the home are not confirmed as of this date, but
she will conform to all standard requirements of the City-owned property policy.
The True Cash Value (TCV) for the property listed in the Assessor’s Office is $9,000,
so our price is set at $6,750 which is 75% of that amount.
FINANCIAL IMPACT: The sale of this lot for construction of a new home will
generate additional tax revenue for the City and will place the property back
on the City’s tax rolls, thus relieving the City of continued maintenance costs.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution and to authorize both the
Mayor and the Clerk to sign said resolution and deed.
      E. 18-Month Extension to Complete Construction of 4 Homes. PLANNING
         & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: To approve an 18-month extension to allow Mr. Bill
Ingalls extra time to complete construction of four single-family homes on Miner
Avenue. The original agreement between the City and Mr. Ingalls stipulated
that construction of four homes was to be completed within 18 months. The City
has customarily granted extensions to persons who have shown that they are
dedicated to completing construction and contributing to the beautification of
the City’s residential areas. Mr. Ingalls has constructed two homes on the site
and has a contract to begin the third. Since the 18-month time period typically
pertains to people building one single family home, it makes sense that more
time can be allowed for several homes to be built.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the time extension,
as well as authorization for both the Mayor and the Clerk to sign the resolution
and deed.
      F. Clearance of Three Parcels           on    Walton.       COMMUNITY      &
         NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To approve the awarding of a contract to Andy’s Tree
Service, 2691 Hall Road, Muskegon, for the low bid of $12,500. The CNS
Department received one other bid for the project from Professional Tree
Services, Inc., 1727 Beidler, Muskegon, for $17,240. The sites that will be cleared
are 814 Murphy (66 x 140), 265 Walton (99 x 140), and 243 Walton (297 x 140).
After the sites have been cleared, the CNS Office in partnership with
Neighborhood Investment Corp. and Fifth/Third Bank are proposing to build 4 to
6 homes on the site.
FINANCIAL IMPACT: Funding will be disbursed from previously approved HOME
funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the low bid by Andy’s Tree Service and
direct the CNS to develop a contract with Andy’s Tree Service for $12,500.
      G. Accept Resignation from the Civil Service Commission. CITY CLERK
SUMMARY OF REQUEST: To accept the resignation of Deborah Smith from the
Civil Service Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To accept resignation.
COMMITTEE RECOMMENDATION:        The Community               Relations   Committee
recommended acceptance of the resignation.
Motion by Commissioner Gawron, second by Commissioner Spataro to approve
the Consent Agenda as read.
ROLL VOTE: Ayes: Carter,     Davis,   Gawron,      Larson,    Shepherd,    Spataro,
           Warmington
            Nays: None
MOTION PASSES
2004-73 UNFINISHED BUSINESS:
      A. Approval of Purchase Agreement for City/State Lots on Clay Avenue –
         City of Muskegon and Brenda Moore. PLANNING & ECONOMIC
         DEVELOPMENT
SUMMARY OF REQUEST: Brenda Moore has purchased the former Freres Gas
Station on Laketon Avenue. She would like to move the building to a lot owned
by the City of Muskegon on Clay Avenue and the adjacent lot (now owned by
the State, but requested for purchase by the City). The purchase agreement
allows the lots to be sold to Ms. Moore, on the condition that the City obtain the
deed for the State-owned lot by December 31, 2004. After closing on the
property, Ms. Moore will have 18 months to move the building to the site and
make improvements. She will provide a $30,000 performance bond, in the
event the improvements are not made within the time allotted. Ms. Moore
intends to improve the building for a commercial/retail use.
FINANCIAL IMPACT: The City will receive $2,500 for the lots. The purchase price
takes into consideration that the building is a historic structure being moved into
a Heritage District and will be appropriately placed in this location.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the Real Estate Purchase Agreement
and authorize the Mayor and Clerk to sign the contract.
Motion by Vice Mayor Larson, second by Commissioner Davis to approve the
Real Estate Purchase Agreement.
ROLL VOTE: Ayes: Davis, Gawron, Larson, Shepherd, Spataro, Warmington,
           Carter
            Nays: None
MOTION PASSES
      B. SECOND READING: Zoning Ordinance Amendment for Alcohol Sales.
         PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend Section 401 of Article IV (R-1, Single
Family Residential); Section 601 of Article VI (RT, Two Family Residential); Section
701 of Article VII (RM-1, Low Density Multiple-Family Residential); Section 801 of
Article VIII (RM-2, Medium Density Multiple-Family Residential); Section 901 of
Article IX (RM-3, High Density Multiple-Family Residential) to amend the Special
Land Use language in regards to permit uses serving and selling alcohol.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends amendment of the Zoning
Ordinance to amend language regarding alcohol sales.
COMMITTEE RECOMMENDATION: The Planning Commission recommended
approval of the request at their 7/15 meeting. T. Harryman, B. Mazade, P.
Sartorius, T. Johnson, T. Michalski, and L. Spataro voted in favor of the change.
B. Smith voted against. S. Warmington and J. Aslakson were absent.
Motion by Commissioner Spataro, second by Vice Mayor Larson to adopt the
amendment of the Zoning Ordinance to amend language regarding alcohol
sales.
ROLL VOTE: Ayes: Gawron, Larson, Spataro, Warmington, Carter, Davis
            Nays: Shepherd
MOTION PASSES
2004-74 NEW BUSINESS:
      A. Consideration of Bids - Nims Street Tank Painting. ENGINEERING
SUMMARY OF REQUEST: Reject all bids on the Nims Street Tank. On July 27, we
received four (4) bids from qualified contractors to paint the Nims Street Tank
with M.K. Painting, Inc. out of Lincoln Park, MI being the lowest bid of $359,550.
FINANCIAL IMPACT:       The construction cost of $359,550 plus associated
engineering costs.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Reject all bids due to budget constraints.
Motion by Commissioner Davis, second by Vice Mayor Larson to reject all bids.
ROLL VOTE: Ayes: Larson, Shepherd, Carter, Davis, Gawron
            Nays: Spataro, Warmington
MOTION PASSES
      B. Proposed Charter Amendments to Change City’s Fiscal Year. FINANCE
SUMMARY OF REQUEST: As set in the City Charter, the City’s fiscal year is
currently the same as the calendar year (January 1 – December 31). This is
inconsistent with the federal, state and virtually all other Michigan municipal
fiscal years. Staff has weighed the pros and cons of changing fiscal years and
believes that there are sufficient benefits to make it worthwhile to propose a
Charter amendment. Accordingly, the two resolutions have been prepared
which, if approved by the Commission, would place the following two questions
on November’s ballot:
   1. Shall the Muskegon City Charter be amended to provide that the fiscal
      year for the City be established by an ordinance adopted by the City
      Commission? The Charter now provides that the fiscal year shall begin
      January 1.
   2. Shall the Muskegon City Charter be amended to provide that the date
      the City Manager submits the budget to the City Commission and the
      date the City Commission adopts the budget shall be set by ordinance?
      The Charter now provides that the City Manager must submit the budget
      by September 1 and the City Commission must adopt it by September 25.
FINANCIAL IMPACT: Placing this item on the November general election ballot
avoids the costs of a special election. If approved, the change in fiscal years
will provide a onetime boost to the City’s general fund and will facilitate other
efficiencies in the handling of City finances.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: Approval of the resolutions.
Motion by Commissioner Spataro, second by Commissioner Shepherd to
approve the resolutions for a proposed Charter Amendment to change the City’s
fiscal year.
ROLL VOTE: Ayes: Shepherd, Spataro, Warmington, Carter, Davis, Gawron,
           Larson
            Nays: None
MOTION PASSES
      C. Zoning Administration Assistance       Contract-LSL.      PLANNING     &
         ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: With the departure of Brian Lazor, Acting Zoning
Administrator, there is a need to provide assistance in the zoning administration
area, until a new Zoning Administrator is hired. Staff sought proposals from two
firms. One (the only local firm that may have been able to assist) did not have
the time or staff available at this point. The other, LSL, was able to provide the
type of assistance needed. LSL will provide a staff person, Joe Kinney, for two
days a week in the office. Joe will also be available for consultation by phone.
FINANCIAL IMPACT: Costs to the City will be $53/hr. for Joe’s services.
Additional services (e.g., writing zoning amendments) will be an additional cost.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the contract between the City of
Muskegon and LSL Associates, Inc., and authorize the Mayor and Clerk to sign
the contract.
Motion by Commissioner Spataro, second by Commissioner Gawron to approve
the contract between the City of Muskegon and LSL Associates, Inc.
ROLL VOTE: Ayes: Spataro,    Warmington,     Carter,   Davis,   Gawron,   Larson,
           Shepherd
            Nays: None
MOTION PASSES
      D. Concurrence with the Housing Board of Appeals Notice & Order to
         Demolish the Following. PUBLIC SAFETY
SUMMARY OF REQUEST: This is to request City Commission concurrence with the
findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within thirty (30)
days. It is further requested that administration be directed to obtain bids for the
demolition of the structures and that the Mayor and City Clerk be authorize and
directed to execute a contract for demolition with the lowest responsible
bidder.
         1463 Sixth – Area 10B
1463 Sixth was removed per staff request.
         1983 Hoyt
CASE # & PROJECT ADDRESS: #EN030059 – 1983 Hoyt
LOCATION & OWNERSHIP: This structure is located on Hoyt between Holbrook
and Keating Ave. It is owned by HUD.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted
2/19/04 and notice and order to repair/remove issued 2/20/04. On 6/3/04 the
HBA declared the property substandard and dangerous building with a 60-day
delay before forwarding to CC because there was a potential buyer for the
property. There has been no further contact from that person.
OWNER CONTACT: The potential buyer was present at the HBA meeting, but
has not made any further contact.
FINANCIAL IMPACT: The cost of demolition will be paid with General funds.
BUDGET ACTION REQUIRED: None.
SEV: $16,100.
STAFF RECOMMENDATION:          To concur with the Housing Board of Appeals
decision to demolish.
ESTIMATED COST OF REPAIRS: $15,000, plus the cost of interior repairs.
         1530 Hoyt
CASE # & PROJECT ADDRESS: #EN040044 – 1530 Hoyt
LOCATION AND OWNERSHIP: This structure is located on Hoyt between E. Grand
and Southern Avenue. It is owned by the Department of Veterans Affairs.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted
4/9/04 and notice and order to repair/remove issued the same day. An interior
inspection was conducted with a realtor on 6/1/04. On 6/3/04 the HBA
declared the property substandard and dangerous building.
OWNER CONTACT: The realtor for the property was present at the HBA meeting
and agreed that the condition of the house is bad enough that his
recommendation to the Dept. of Veterans would be to have the house
demolished.
FINANCIAL IMPACT: The cost of demolition will be paid with CDBG funds.
BUDGET ACTION REQUIRED: None.
SEV: $20,000
STAFF RECOMMENDATION:        To concur with the Housing Board of Appeals
decision to demolish.
ESTIMATED COST OF REPAIRS: $80,000. This structure does not appear to be
salvageable.
Motion by Commissioner Spataro, second by Commissioner Gawron to concur
with the Housing Board of Appeals decision to demolish 1983 Hoyt and 1530
Hoyt.
ROLL VOTE: Ayes: Warmington,     Carter,   Davis,   Gawron,   Larson,   Shepherd,
           Spataro
            Nays: None
MOTION PASSES
         523 W. Grand – Area 10B
523 W. Grand was removed from the agenda by staff.
         458 Mulder
CASE # & PROJECT ADDRESS: #EN040029 – 458 Mulder.
LOCATION AND OWNERSHIP: This structure is located on Mulder between
Wesley and Jackson Avenue. It is owned by Brian Bouman, who lives in Holland.
STAFF CORRESPONDENCE: A dangerous building inspection was conducted
2/6/04 and notice and order to repair/remove issued 2/9/04. An interior
inspection was conducted 2/13/04. On 6/3/04 the HBA declared the property
substandard and dangerous building.
OWNER CONTACT: The owner scheduled the interior inspection and stated at
that time he planned to start repairs in April and be finished in about 90 days.
He was present at the HBA meeting with his realtor and then stated he was
donating the house to Habitat for Humanity and they planned to demolish the
house and rebuild there. Since then it was discovered the lot is not buildable
and still owned by Mr. Bouman. There has been no further contact.
FINANCIAL IMPACT: The cost of demolition will be paid with CDBG funds.
BUDGET ACTION REQUIRED: None.
SEV: $14,300.
STAFF RECOMMENDATION:        To concur with the Housing Board of Appeals
decision to demolish.
ESTIMATED COST OF REPAIRS: $23,000.
Motion by Commissioner Spataro, second by Commissioner Shepherd to concur
with the Housing Board of Appeals decision to demolish 458 Mulder.
ROLL VOTE: Ayes: Carter,     Davis,   Gawron,     Larson,   Shepherd,     Spataro,
           Warmington
            Nays: None
MOTION PASSES
         637 Amity – Area 11
CASE # & PROJECT ADDRESS: #EN030174 – 637 Amity.
LOCATION AND OWNERSHIP: This structure is located on Amity between Scott
and Kenneth and is owned by Gustav Buchholz. The house was damaged by
fire in 2002 and the City holds $6,437 in escrow until the repairs are completed or
demolition occurs.
STAFF CORRESPONDENCE: The owner was notified by the Fire Marshal on
6/12/02 of the insurance money being deposited in escrow. A board up notice
was issued 3/11/02 and 4/21/03. A dangerous building inspection report was
written 11/20/03 and Notice and Order to repair or remove was issued 12/3/03.
On 1/8/04 the HBA declared the house substandard and dangerous.
OWNER CONTACT: The owner (at that time Jeanette Casson) was present at
the 1/8/04 HBA meeting with a potential buyer (Gustav Buchholz) of the
property who stated he intends to repair and live in the house. They were told
at that time that even though the house was being declared, they would have
30 days in which the potential owner could bring in proof of ownership, schedule
an interior inspection and submit a timetable for repairs.           Mr. Buchholz
scheduled an interior inspection for 1/29/04, but had to cancel and reschedule
for personal reasons. The interior inspection was scheduled for 2/20/04. That
inspection was also canceled and rescheduled for 2/24/04. This case has been
scheduled to go before the City Commission on 2/24/04, but was removed from
the agenda when the interior inspection was conducted. The owner was
notified that permits had to be pulled by 3/31/04, 30 day progress inspections,
and a completion date of 9/1/04. On 4/5/04 Mr. Buchholz applied for a building
permit, but disagreed with the value of $40,000 for repairs and did not take the
permit out. He stated he would be back within a week and bring in estimates
from his contractors to show what he believed to be the real value for the
building permit. He was told at that time that he was already beyond the
deadline date for pulling a permit and we could not promise him that in another
week he would still be allowed to pull the permit. He left and came back
4/15/04 and dropped off estimates from a Wyoming building contractor for all of
the work to be completed. The estimates given were from a contractor who is
not registered with the City who has a “repair service” and his estimates were for
electrical, mechanical and plumbing which he is not licensed to do. Mr.
Buchholz applied for the building permit 4/27/04 and was given 90 days due to
the fact that he had already used up 2 of the 6 months originally given. He was
told at the time of issuance that if significant progress was made the permit
could be extended. On 7/22/04 an electrical permit was issued. No plumbing
or mechanical permits have been pulled and no inspections called for.
FINANCIAL IMPACT: The cost of demolition will be paid with money that is
escrowed from the fire.
BUDGET ACTION REQUIRED: None.
SEV: $21,200
STAFF RECOMMENDATION:        To concur with the Housing Board of Appeals
decision to demolish.
ESTIMATED COST OF REPAIRS: $40,000.
Motion by Commissioner Spataro, second by Vice Mayor Larson to concur with
the Housing Board of Appeals decision to demolish 637 Amity but defer bidding
contract to October 1, 2004.
ROLL VOTE: Ayes: Gawron, Larson, Shepherd, Spataro, Warmington, Carter
            Nays: Davis
MOTION PASSES
PUBLIC PARTICIPATION
Various comments were heard from the public.
ADJOURNMENT:
The City Commission meeting adjourned at 8:00 p.m.


                                    Respectfully submitted,




                                    Gail A. Kundinger, MMC
                                    City Clerk

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